Digital entrepreneurs are flocking to Germany’s cities, attracted by the availability of talent, affordability and the ever-expanding ecosystems. Markets Germany takes the pulse of the start-up scene, with a focus on Berlin, Hamburg and Munich.

Move over, London!

Germany is positioning itself to become Europe’s nerve center for digital start-ups, with Berlin, Hamburg and Munich competing to entice foreign entrepreneurs and investors to their riverbanks – along with other cities like Frankfurt and Dortmund.

When Germany took over the G20 presidency in December, Sigmar Gabriel, then head of the Federal Ministry for Economic Affairs and Energy (BMWi), signaled that it would be taking a global lead on digitalization. A month before, BMWi unveiled its Di­gi­tal Hub Initiative (de:hub), an agency tasked with facilitating co-operation between start-ups, academia, SMEs and industry, to promote digital transformation.

There has never been a better climate for tech start-ups to come to Germany. Affordable rents, a thriving tech business eco­system – from coding through to 360˚ drones – the availability of incentive schemes and access to the single market have all contributed to the shift towards mainland ­Europe.